Elk Grove Village Property LLC, an indirect subsidiary of Prime Data Centers LLC, has raised $900 million through a high-yield note sale to finance a build-to-suit hyperscale data center in the Chicago metropolitan area that has been leased to CoreWeave Inc. for 15 years.
The securities carry a five-year maturity and were sold at par with a yield of 7.5% - a pricing point described as the low end of the range that had been discussed ahead of the offering. Banco Santander SA was the manager of the deal. The size of the transaction was increased by $50 million relative to the amount initially discussed, reflecting the final terms of the sale.
The Elk Grove development is intended to serve as a hyperscale facility and, under the terms disclosed, the 15-year lease to CoreWeave represents approximately $2.2 billion in revenue for the project over the lease term. The financing was arranged by the property vehicle established to support the project and its long-term, build-to-suit arrangement with CoreWeave.
The use of high-yield notes for such projects is consistent with a broader financing pattern across the sector. Data center developers and companies participating in the build-out of artificial intelligence infrastructure have increasingly accessed the high-yield bond market to support expansion, with more than $27 billion raised from riskier bonds so far this year according to compiled market data.
Market participants have been watching issuance from the sector as companies seek non-investment-grade debt to fund large-scale facilities tied to AI workloads. In this instance the financing involved a dedicated property vehicle, a long-term take-or-pay style lease arrangement occupying the facility, and a structured issuance aimed at investors in the high-yield market.
The transaction highlights how developers are structuring financings around long-term leases to secure capital for build-to-suit hyperscale projects. The offering’s pricing and the decision to increase the deal size from initial plans reflect demand conditions among investors who buy higher-yielding corporate debt.
Note: The article presents the financing terms, the lease duration and the revenue figure associated with the project, as well as the broader market context of increased high-yield issuance in the data center sector.